Leonard Abess Jr.

Barack Obama recognized a banker in his speech Tuesday night. This comes at a time when bankers haven't been getting a lot of good press lately.

From CNN:

More than two dozen guests joined first lady Michelle Obama at the president's speech to a joint session of Congress Tuesday night.

One person on the first lady's guest list was Leonard Abess Jr., a Miami banker who received a $60 million bonus from the proceeds from the sale of shares of City National Bank in Florida and gave it out to his 399 workers and 72 former workers.

During his speech, President Obama said Abess didn't tell anyone about his generosity, but when the local newspaper found out, Abess simply said, "I knew some of these people since I was 7 years old. I didn't feel right getting the money myself."

Abess demonstrates the kind of "responsibility" the president has called for from high-profile financial CEOs, the White House said.

Obama contrasted Abess' story with the greed that he said got the country into the problems it faces now.

"CEOs won't be able to use taxpayer money to pad their paychecks, or buy fancy drapes, or disappear on a private jet. Those days are over," Obama said.

What Abess did was very generous. He deserves to be commended for his generosity.

No doubt, Abess is extremely well off financially. Still, his personal wealth doesn't diminish the generosity of his decision to give the $60 million bonus to his workers, current and past.

Abess shows that while the very rich can be very greedy, they can also be very thoughtful, giving, caring individuals.

I think Abess deserved the recognition he received from Obama. He's a good man and he did a very good thing. He sets an excellent example for other CEOs to follow. The same goes for rich people in any industry or profession.

What I like about what Abess did is that he CHOSE to share the $60 million bonus. Abess wasn't coerced into "spreading the wealth around." The government didn't confiscate the money and redistribute the wealth as bureaucrats saw fit. There was no middle man, no tax collector. Abess CHOSE to reward his employess with his bonus money.

That stands in contrast to Obama's "tax the rich" policies. Abess didn't do it because Obama's government stepped in and set rules telling him how the bonus would be used.

So what was the point of Obama telling Abess' story?

That there's no need for government to intrude? That people are capable of doing good for others without being forced?

By acknowledging Abess, Obama may have been suggesting that other wealthy Americans should be generous like him, that it's a good thing to do. But Obama wasn't just throwing a suggestion out there. He put wealthy CEOs on notice.

"CEOs won't be able to use taxpayer money to pad their paychecks, or buy fancy drapes, or disappear on a private jet. Those days are over," Obama said.

Obama is saying that government is going to control the CEOs. Receiving taxpayer money means they must relinquish their independence. No more fancy drapes for you!

It should be noted that Abess didn't give taxpayer money to his workers. It was his own money that he decided to share.

I think Abess' story illustrates that the free market works. In the case of Abess, nothing was broken. No reform or regulation or oversight was necessary for workers to benefit.

Government intervention had nothing to do with Abess spreading the wealth around. He did it by choice, not be force.
______________

More on Leonard Abess Jr.

Abess didn't publicize what he had done. He didn't even show up at the bank to bask in his employees' gratitude on the day the bonus envelopes were distributed. He was inundated with letters soon afterward.

Asked later what motivated him, Abess said he had long dreamed of a way to reward employees. He had been thinking of creating an employee stock option plan before he decided to sell the bank.

"Those people who joined me and stayed with me at the bank with no promise of equity -- I always thought some day I'm going to surprise them," he said. "I sure as heck don't need [the money]."